First Bitcoin-Backed Municipal Bond Launches In New Hampshire

New Hampshire has licensed the primary US municipal safety explicitly backed by Bitcoin, approving a $100 million “conduit” bond that makes use of over-collateralized BTC moderately than tax revenues or undertaking money flows as its main backstop. The choice by the state’s Enterprise Finance Authority (BFA) positions New Hampshire as an early check mattress for integrating digital belongings into the roughly $140 trillion world bond market.

New Hampshire Continues To Lead US States Into Bitcoin Adoption

Governor Kelly Ayotte framed the transfer as a approach to appeal to capital whereas insulating residents from balance-sheet threat, saying she is “proud that New Hampshire is as soon as once more first within the nation to embrace new applied sciences with this historic Bitcoin-backed bond,” and calling it “an revolutionary approach to convey extra funding alternatives to our state and place us as a pacesetter in digital finance with out risking state funds or taxpayer {dollars}.”

The bond follows a normal conduit construction: the BFA authorizes the issuance, however the credit score threat rests with the personal borrower, not the state’s basic fund. What’s novel is the collateral package deal. The borrower should submit about 160 % of the bond’s notional worth in Bitcoin, held by digital asset custodian BitGo. If BTC’s worth falls and the collateralization ratio approaches roughly 130 %, automated liquidation of a part of the Bitcoin stack is triggered to guard bondholders and protect principal. The BFA oversees the framework however doesn’t assure compensation.

🚨SCOOP: New Hampshire Launches First Bitcoin-Backed Municipal Bond

The Granite State simply grew to become the primary to approve a muni bond backed by $BTC, a milestone that would pave the way in which for digital belongings to enter the $140 trillion world debt market.https://t.co/18XTtMK9Tw

— Eleanor Terrett (@EleanorTerrett) November 19, 2025

The construction was designed by Wave Digital Property and municipal specialist Rosemawr Administration, with BitGo as custodian and Orrick, Herrington & Sutcliffe as authorized counsel. Wave co-founder Les Borsai described the transaction as “the opening of a brand new debt market,” arguing that it reveals how “private and non-private sectors can collaborate to responsibly unlock the worth of digital belongings.” Orrick accomplice Orion Mountainspring known as it “the primary municipal safety backed by cryptocurrency” and a possible “game-changer for digital forex and municipal finance.”

Charges and any Bitcoin appreciation related to the transaction will move right into a devoted Bitcoin Financial Growth Fund, meant to help innovation and enterprise development within the state, moderately than the overall finances. The bond additionally dovetails with New Hampshire’s just lately licensed Strategic Bitcoin Reserve, which permits the state treasury to allocate as much as 5 % of funds into extremely capitalized digital belongings, in apply making Bitcoin the one viable candidate underneath immediately’s market situations.

Republican consultant Keith Ammon, the driving pressure behind a lot of the state’s Bitcoin laws, has introduced the framework as a managed approach to check BTC as high-grade collateral for public finance with out exposing taxpayers to direct losses. As a result of the bond isn’t a general-obligation safety and depends on over-collateralization plus pre-defined liquidation thresholds, officers argue that Bitcoin’s volatility is ring-fenced throughout the construction.

Whether or not the mannequin scales past this preliminary authorization will rely upon investor demand, pricing and scores therapy as soon as an precise borrower brings a deal to market. For now, New Hampshire has moved the idea of Bitcoin-backed public debt from idea into the equipment of US municipal finance, making a reside template different states and issuers can examine or select to emulate.

At press time, BTC traded at $91,401.

Featured picture created with DALL.E, chart from TradingView.com

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